The Reserve Bank of India (RBI) will introduce 200-rupee note effectively by the first week of September, confirmed Finance Ministry on Wednesday.
In a statement released by the Department of Economic Affairs, the government said the Central Government specifies the denomination of bank notes of the value of two hundred rupees.
“In exercise of the powers conferred by sub-section (1) of section 24 of the Reserve Bank of India Act, 1934 and on the recommendations of the Central Board of Directors of the Reserve Bank of India, the Central Government hereby specifies the denomination of bank notes of the value of two hundred rupees,” reads the statement.
The notification for the Rs 200 notes was issued under Section 24 of the Reserve Bank of India Act, 1934, and on the recommendations of the Central Board of Directors of the RBI.
Finance Ministry sources said that the new 200 denominated bank notes, being printed at a government press in Mysuru, will facilitate to fill out the demand of cash in the market.
As per reports, the decision to introduce new notes of Rs 200 was taken in March. The process of printing the new Rs 200 notes likely begin after June, once the government officially approved of the new denomination.
The RBI has also started field trials of plastic notes of Rs 10 as plastic notes are expected to last longer than cotton substrate based bank notes.
There are even reports of the government bringing back the Rs 1,000 currency note in a new avatar soon.
On November 8 last year, Prime Minister Modi announced the withdrawal of Rs 500 and Rs 1,000 currency notes, amounting to around 86% of currency in circulation. Since then, RBI has replaced the demonetised notes with the new Rs 2, 000 and redesigned Rs 500 bank notes.
On March 13, RBI lifted all cash withdrawal caps. ATM operators, however, say that there is a paucity of lower denomination banknotes.